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Managerial support: Renewing the role of managers amidst declining union


support for employees

Article  in  Journal of General Management · October 2017


DOI: 10.1177/0306307017723313

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Article
Journal of General Management
2017, Vol. 43(1) 24–32
Managerial support: Renewing the role ª The Author(s) 2017
Reprints and permission:

of managers amidst declining union sagepub.co.uk/journalsPermissions.nav


DOI: 10.1177/0306307017723313
journals.sagepub.com/home/gem
support for employees

Antonio Travaglione
The University of Newcastle, Australia

Brenda Scott-Ladd, Justin Hancock and Joshua Chang


Curtin University, Australia

Abstract
This study investigates how Australian employees perceive managerial support and the influence of union membership on
their perception of managerial support using data from 4124 employed persons in Australia across a range of industry
sectors. The results indicate that employee perceptions of the work environment (control over working hours, job
security, pay equity and safety) influence their perceptions of managerial support, regardless of union membership. The
findings imply that managers have a critical role to play in supporting the needs of employees, particularly as organizations
confront the challenges posed by aging workforces, growing skill shortages and an increasingly diverse and mobile
workforce. This article addresses the call for organizations to provide more support to their employees from govern-
ments and management scholars. It also addresses the issue of managers taking on greater prerogative as employee
advocates in the light of declining union influence.

Keywords
employee engagement, employee relations, employee welfare, management development, organizational support

Introduction management to play a bigger role in supporting employees


(e.g. Brunetto et al., 2010; Pfeffer, 2010; Schein, 2009;
The relationship between managers and employees has
Shacklock et al., 2009), the pertinent question is whether
long presented a challenge worldwide, with a decline in
employees will perceive this support from management
support for employees as organizations shift from an
and if such support perceived to be similar to that coming
employee focus to a strategic focus (e.g. OECD, 2009; from unions. This can reveal if the role of unions is
Van Buren et al., 2011). Environmental changes have led
becoming diminished as organizations become increas-
to a decline in union power over the past several decades
ingly supportive of employees. These issues form the
(e.g. Baraghoshi and Bilginsoy, 2013; Bray and Macneil,
motivation for this study, which investigates how Australian
2011; Carter and Cooper, 2002; Judzik and Sala, 2013;
employees perceive managerial support and the influence
Sapelli, 2009), leading to increased working hours, higher
of union membership on their perception of managerial
stress levels and job insecurity (e.g. ACTU, 2013; Pollert
support. The study draws on data from 4124 employed
and Charlwood, 2009). The decline in union membership
persons in Australia across a range of industry sectors and
and influence calls for a re-evaluation of employer obli- uses multivariate analytical techniques, including domi-
gations to engage employees and support their welfare
nance analysis and hierarchical regression. Relationships
(Pfeffer, 2010; Schein, 2009) in lieu of union presence.
among demographic, attitudinal work environment vari-
Further challenges arise from increased migration which
ables and employee perceptions of support from manage-
adds to cultural and language diversity (e.g. Burgess et al.,
ment are tested.
2010; Kochan, 2006; Pfeffer, 2010; Verworn et al., 2009),
along with other demographic and societal changes. Gov-
ernments and organizations are not prepared to respond to
Corresponding author:
the foregoing challenges and have not developed long- Joshua Chang, Curtin Business School, Curtin University, Kent St, Bentley,
term strategies to maximize the potential of the labour WA 6102, Australia.
force (Verworn et al., 2009). Given the emphasis for Email: j.chang@curtin.edu.au
Travaglione et al. 25

Literature review scheduling and employee flexibility regarding the job,


which in turn affected both job satisfaction and work–life
Managerial support satisfaction (Beutell, 2010). This occurs because supervi-
The need for mutual support between managers, leaders sors have the most direct contact with employees and so are
and employees has recently attracted the attention of nota- able to respond to their needs. However, we argue that
ble management scholars (e.g. Kurtessis et al., 2017; Van supervisors do not always have the decision-making
Buren et al., 2011). The challenges from globalization, authority; thus, we extend managerial support in two ways.
potential threats to the environment, technological Firstly, we include managers because they have the
advances and increasing pressure for social responsibility decision-making prerogative to respond more flexibly to
need shared responses (Schein, 2009), and thus, there needs employee needs. Secondly, we believe the support needs
to be a balance between the needs of the organization and to extend beyond just the job role and scheduling to take
its members. Mutual dependency is fundamental to stake- into account reasonable non-job-related, or personal and
holder and social capital theories, which explain how orga- family, issues that affect an individual’s ability to perform.
nizations might address the conflicting expectations of This broader approach is borne of other studies. For exam-
various stakeholders (Carroll and Buchholtz, 2008; ple, another US study of 2800 employees found that
Donaldson and Preston, 1995; Van Buren et al., 2011) and increased flexibility improved worker effectiveness, which
the mutual benefits and obligations that form part of the correlated with job satisfaction, retention and improved
employment exchange (Andriessen and Gubbins, 2009). mental health (Jacob et al., 2008). Similar results emerged
Mutual dependency is also recognized in perceived orga- from an Australian study of nurses and police (Brunetto
nizational support (POS), which refers to ‘the extent to et al., 2010), which identified that supervisory support pro-
which employees believe that their organization values moted autonomy, improved job satisfaction and lowered
their contribution and cares about their well-being’ (Eisen- workplace stress. Flexible work offers benefits for both
berger et al., 1986: 501). employers and employees. Benefits for employers include
Management support is an extension of POS. It recog- employee productivity, motivation, commitment, retention,
nizes that mutual obligation is part of the employment con- cost savings and enhanced workforce planning, while ben-
tract and that there may be times when managers are efits for employees include improved work–life balance,
required to support employees in dealing with challenges better time management and less stress and more efficient
they face, even when these extend beyond the workplace. It travel options (Industrial Relations, 2013). The Australian
is not just about providing skills, training, job opportunities Council of Trade Unions recently strengthened their push
and fair pay but also about building a culture of trust and a to help employees access flexible work hours, in the light of
safe psychological environment that motivates individuals many families with both parents balancing roles in work
and ensures their involvement and commitment (Boxall and and care (Hurst, 2013).
Macky, 2009). The relationship between employers Work issues that influence employee health and safety
and their employees is one of mutual obligation (Boxall and threaten the physical and psychological well-being of
and Macky, 2009; Johns, 2006), and in this context, manage- employees include poor person–job fit, complaints, conflict
rial support occurs when managers treat employees fairly, with colleagues, aggressive clients, high workloads, poor
build trust and consult employees regarding work matters so management and inadequate supervision (Jackson and
they can build a relationship of mutual respect where Clements, 2006). Increased diversity in a workforce adds
employees perceive that their needs are considered complexity because of the differing expectations, lack of
and are acted on appropriately. Such support can also facil- understanding and communication issues that can be aggra-
itate the communication and implementation of strategic vated by other forms of conflict, such as racism, homophobia
decisions (e.g. Dasgupta, 2015). and intergenerational misunderstandings. Threats of layoffs
add to stress and other health problems, such as depression,
particularly for those disadvantaged by ethnicity, social sta-
Improving the work environment tus or low skill levels. In this environment, unions argue they
Studies suggest that giving employees some autonomy and still have a strong role to play in protecting the rights of
flexibility regarding working hours and having the ability employees (Hepworth and Akerman, 2012).
to work from home can improve work–life balance and Unions argue that a decline in their ability to repre-
employee satisfaction (Shacklock et al., 2009). The down- sent employees contributes to reduced monitoring and
side is that if the expectations or workload from working at regulation of workplace health and safety (ACTU,
home is too high, it can intrude into home life with negative 2012). Health and safety issues are complex, and man-
consequences (Schieman and Glavin, 2008). Studies of agers need considerable knowledge to actively regulate
supervisory support have identified that employee control the working environment and ensure employee health
over work schedules and support are important moderating and safety is not threatened. This is one area where
factors (Beutell, 2010). For example, a study among 2801 decisions that provide greater flexibility, choice and
American employees in relation to job demands and having inclusivity can provide an immense gain to both
the available resources to do the job identified that good employees and the organization. Moreover, managers
relationships with the supervisor influenced work are well placed to understand the personal situation and
26 Journal of General Management 43(1)

needs of each employee due to their observations and a rise in individualism, collective bargaining has evened
contact with employees at the ‘coal face’. out some of the impact (Connolly et al., 2012) although,
The past few decades have seen a substantial growth of given the current state of the market and the effects of the
insecure work in Australia, with only 60% of Australians in global financial crisis, there are employees who have lim-
full or part-time ongoing employment (ACTU, 2013). In ited options. This can ultimately lead to a reduction in
addition, privatization, corporatization and public–private employee performance, commitment and increased turn-
partnerships have generally transformed public service jobs over (Sturman et al., 2003). If we accept this argument,
and seen job losses and sectoral jobs transfer, with major employees without union support might feel more precar-
jobs losses taking place in Australia in 2012 and 2013 ious and vulnerable in the current climate. A number of
(Peake, 2013). Job insecurity reduces employee perfor- groups fit into this category, such as women who carry the
mance and commitment and increases voluntary turnover. greater burden of juggling a career with their role as home-
It also threatens income, social networks, the ability to plan makers, older workers caring for elderly parents, migrants
and structure many aspects of life and can affect employ- without family support and single parents. These groups are
ees’ mental and physical well-being, increase stress and likely to be more concerned about the need for managerial
undermine job satisfaction, performance and commitment support. Hence, union membership may explain how
to the organization (Sverke et al., 2002). Conversely, employees perceive the relationship between their work
employees who perceive that they have job security report environment (such as, control over hours, job security,
less stress, higher motivation and lower turnover (Fried safety and pay equity) and managerial support, leading to
et al., 2003; Sverke et al., 2002). Job security increases the second hypothesis:
performance and commitment, whereas an insecure work-
force negatively affects attraction and retention, and limits H2: Union membership explains the relationship
access to the best possible human resources needed for between employee perceptions of the work environment
success and sustainability (Barney, 2001; Barney and and perceptions of managerial support.
Wright, 1998; Boxall, 1996). The foregoing review of how
employee perceptions of the work environment (defined as Sample and data collection
control over hours, job security, safety and pay equity) can
The sample was sourced from the 2009 Australia at Work
positively influence perception of managerial support
study conducted by the Workplace Research Centre (WRC)
enunciates the first hypothesis:
at the University of Sydney. The study is funded by the
H1: Employee perceptions of the work environment Australian Research Council and Unions NSW and is
influence perceptions of managerial support. advised by a board consisting of labour market and indus-
trial relations academics from around Australia. The survey
documented the findings of a total of 6801 respondents via
Declining union influence telephone interviews of up to 20 min and is compliant to
privacy principles under the Association of Market and
Union power in European and other Western countries has
Social Research Organizations. Participation was anon-
been diminished over the past several decades (Baraghoshi
and Bilginsoy, 2013; Carter and Cooper, 2002; Sapelli, ymous and voluntary, and the incentive for participating
was a 1-in-40 chance in winning an iPod. The sample is
2009), as in Australia (ABS, 2013; Bray and Macneil,
weighted, using population estimates from the Australian
2011), due to environmental changes such as industrial
Bureau of Statistics (ABS) Labour Force Survey, according
reorganization, globalization, technological change and
to age, sex, location, labour force status and union mem-
economic downturn (Catano, 2010). Goslinga and Sverke
bership. A subset of 4124 usable responses was used for
(2003) noted that unions need to be adaptable to change in
this study. The gender distribution was equal, with 50.5%
order to survive. Union membership in Australia has been
being male and 49.4% being female. The mean age was
in decline over the past three decades. While in 1979, just
over half (51%) of the Australian workforce were union between 35 years and 44 years (29%), with the second
largest group aged between 45 years and 54 years (30%).
members, by 2013, less than a fifth (17%) of workers were
Thirty-one per cent were union members, whereas another
unionized, with steeper declines recorded for men (ABS,
20% indicated they had been union members in the past.
2013). These changes have affected the influence of unions
considerably as well as the extent to which they can provide
support to employees in the workplace (Forsyth and Suther-
Measures
land, 2006). On one hand, managers have gained greater The quantitative survey contained 118 questions including
control to make their organizations more efficient, cost- 10 attitudinal items to gain information on work practices
effective and productive. On the other hand, this has and conditions, employment arrangements and industrial
coincided with a reduction in union and employee power, relations. Selected items were used in this study. Three of
raising concerns about negative outcomes for employees, the items taken from the Australian Workplace Industrial
such as reduced working conditions, job security, flexibil- Relations Survey by Morehead et al. (1997) asked about
ity and remuneration and increasing workloads. While consultation, fair treatment and trust, and these formed the
Bray and Macneil (2011) point out the association between managerial support construct. These items included ‘Man-
lower union membership with a decline in collectivism and agers at my workplace consult employees about issues
Travaglione et al. 27

affecting staff’, ‘I feel that employees are treated fairly at 1993; Miller et al., 2012). The analysis process used
my workplace’ and ‘Managers at my workplace can be hierarchical regression to add sequentially the control vari-
trusted to tell things the way they are’. Additional items ables, the independent variables and the full mediation
were drawn from the Australian Survey of Social Attitudes model, as recommended by Aiken and West (1991). Med-
(Wilson et al., 2005), and these questions related to work- iation is identified when the addition of the final variable
place safety, pay equity against increased workload, control significantly changes the relationship between the indepen-
over work hours and job security. Attitudinal responses dent and dependent variable (Aiken and West, 1991; Miller
were measured using Likert-type scale responses, where et al., 2012).
1 signified strongly disagree, 2 indicated disagree, 3 was
neutral, 4 stood for agree and 5 stood for strongly agree.
Negatively worded items were recoded so that positive and Analysis and results
negative response patterns aligned.
Demographic information included ordinal age cate-
Data analysis
gories, from 16 years to 24 years, 25 years to 44 years and All variables were screened for normality, homogeneity of
45 years and above, and ordinal education categories, rang- variance and univariate outliers. A small number of outliers
ing from 1, which signified a participant had not completed were detected on four of the eight attitudinal variables,
high school, to 8, signifying postgraduate qualifications. though inspection of each case confirmed these as legiti-
For the purpose of multivariate analysis, non-ordinal vari- mate outliers that were not problematic. A non-normal dis-
ables were reclassified as dummy (binary) variables as fol- tribution pattern among some cases was also deemed
lows: employees who were not union members were acceptable given the large data set and the robustness of
denoted by (0) and union members denoted by (1); employ- regression. It should be noted that the large sample sizes
ees in the private sector were denoted by (0) and public increase the power of the data and can over-inflate the
sector denoted by (1); employees in permanent positions significance of relationship and probability values. In this
were denoted by (0) and casual positions denoted by (1); instance, coefficient values provide better indicators of the
employees in full-time positions were denoted by (0) and relationship. Reliability analysis was conducted to identify
part-time positions denoted by (1); and males were denoted the composite construct of managerial support, with three
by (0) and females denoted by (1). items: ‘Managers at my workplace consult employees
about issues affecting staff’, ‘Managers at my workplace
can be trusted to tell things the way they are’ and ‘I feel that
Analytical strategy employees are treated fairly at my workplace’, returning a
Multivariate analysis with SPSS18 was used to test the Cronbach’s a ¼ 0.824.
relationships between the constructs and items. The first Next, the means and standard deviations for the compo-
step was to obtain the means and standard deviations for site variable of managerial support, the single-item attitu-
each variable and exclude cases with missing data. Being dinal variables and demographic (ordinal and dummy)
mindful that large sample sizes increase the power of the variables were tested. The findings show that perceptions
data and can over-inflate the significance of relationship of managerial support positively correlated to control over
and probability values, we examined the coefficient values, when and how long to work, job security, perception of
which are the better indicators of relationships (Budescu, safety at work and pay equity against workload. However,
1993; Miller et al., 2012). Thereafter, reliability analysis perceptions of managerial support negatively (and signifi-
was conducted to identify the construct of managerial sup- cantly) correlated to workers in the public sector, union
port within the attitudinal variables. members and older employees. This suggests that workers
The second step was to analyse the data using hierarch- in the public sector, union members and older employees
ical regression and dominance analysis. Testing for dom- perceive less management support. The correlation is
inance helps to address concerns about the reliability and shown in Table 1.
accuracy of coefficients by testing changes in the w2 of Except for gender, all items significantly correlated with
competing models (Budescu, 1993; Miller et al., 2012). union membership. Independent sample t-tests identified
Standardized coefficients are reported to demonstrate the that union members perceived they had significantly less
effect of any change, as these are less problematic than management support, less control over when to work, less
unstandardized coefficients (Miller et al., 2012). Vari- pay equity against workload and felt less safe at the work-
ables were centred to address concerns about uncertainty place. Significant differences in age groups suggested this
in the relationship between the standardized coefficient may be a moderating variable. However, cross-tabular
and predictor variables (Budescu, 1993). Despite argu- analysis revealed older workers were proportionally more
ments about whether mean centring improves the stability likely to be union members (15% if aged 16–24 years, 38%
of measures (Komrey and Foster-Johnson, 1998), the if aged between 25 years and 44 years and 61% if aged 45
technique is widely accepted as an appropriate method years or over); thus, age was maintained as a control vari-
to avoid multicollinearity problems when testing for able. It is worth noting that some relationship values appear
effects (Hoyt et al., 2008). small, which can be explained by the large sample size.
Changes in the R2 value assessed the relative importance Because of the increased risk of error, the more stringent
of predictor variables in the competing models (Budescu, confidence interval of 99% was preferred.
28
Table 1. Descriptive statistics and correlations for all variables.

Variable M SD 1 2 3 4 5 6 7 8 9 10 11 12
1. Managerial Support © 3.88 0.83
2. Control over when to work 3.10 1.25 0.149**
3. Control over how long to work 3.04 1.18 0.150** 0.536**
4. Job security 4.12 1.05 0.251** 0.086** 0.153**
5. Safety at work 3.82 1.09 0.310** 0.197** 0.148** 0.114**
6. Pay equity against workload 2.64 1.20 0.273** 0.180** 0.154** 0.109** 0.180**
7. Sector 0.31 0.46 0.049* 0.076** 0.060** 0.121** 0.085** 0.165**
8. Employment status (perm/casual) 0.21 0.41 0.021 0.125** 0.081** 0.128** 0.039* 0.131** 0.048**
9. Employment status (full/part-time) 0.32 0.47 0.003 0.143** 0.151** 0.025 0.071** 0.095** 0.054** 0.388**
10. Union member 0.70 0.46 0.159** 0.185** 0.088** 0.054** 0.161** 0.193** 0.339** 0.153** 0.054**
11. Education 5.24 1.89 0.016 0.071** 0.007 0.065** 0.062** 0.090** 0.233** 0.065** 0.107** 0.104**
12. Age 2.26 0.71 0.070** 0.076** 0.045** 0.024 0.016 0.099** 0.166** 0.207** 0.091** 0.184** 0.060**
13. Gender 0.50 0.50 0.012 0.034* 0.047** 0.047** 0.045** 0.004 0.084** 0.087** 0.384** 0.007 0.022 0.027
Note: N ¼ 4124. © ¼ composite variable. Values in bold are significantly correlated with Managerial Support.
**p < 0.01 level; *p < 0.05.
Travaglione et al. 29

Table 2. Hierarchical regression analysis of the relationships Discussion


affecting managerial support.
The analysis supports hypothesis 1, as employee percep-
2 tions of the work environment (control over working hours,
1 Control and job security, pay equity and safety) were found to influence
Control independent 3
employee perceptions of managerial support. The support
Models variables variables Mediation
of hypothesis 1 is followed by the testing of hypothesis 2,
Control variables which was rejected as union membership was not found to
Age 0.065** 0.045* 0.036 explain employee perceptions of the work environment and
Sector 0.040 0.005 0.022 perceptions of managerial support. This implies that the
Independent variables
Control over when to 0.015 0.001
role of unions is diminishing as organizations become
work increasingly supportive of employees. In the past, unions
Control over how long 0.059** 0.063** provided a voice so that the concerns of employees were
to work raised and heard (Schein, 2009), which provides a psycho-
Job security 0.199*** 0.206*** logically and emotionally safer work environment (Rous-
Pay equity against 0.197*** 0.186*** seau and Aubé, 2010). Accordingly, some researchers
workload argue that managers should pick up the formal role of
Safety at work 0.246*** 0.238***
Mediator
employee advocate (Kochan, 2004; Sheehan et al., 2006),
Union membership 0.091*** especially when there is no union presence. Managers have
Model fit to confront and deal with employee issues that impact the
R2 0.004 0.195 0.202 workforce on a daily basis and often have to make deci-
Adjusted R2 0.003 0.193 0.200 sions on the spot and respond to the situation confronting
F value 8.01*** 82.75*** 75.50*** them. Managers tend to deal with employee concerns that
Note: All coefficients are standardized. N ¼ 2410. arise on a day-to-day basis, from work-related issues such
***p < 0.001; **p < 0.01; *p < 0.05. as stress, bullying, interpersonal conflict and risk of injury
to non-work-related issues such as concern about family
members, aging parents and financial stresses, to name a
Regression analysis few. The decline in union influence presents an opportunity
Hierarchical linear regression was used to test for dom- for managers to engage with and support employees and to
inance between the various models, and these are shown ensure that they feel they are valued members of an orga-
nization and provide them with a psychologically safe envi-
below in Table 2. Mediating effects explain ‘why’ that
ronment (e.g. Carmeli and Gittell, 2009). In other words,
relationship occurs (Frazier et al., 2004), and the first
good management can obviate the need for unions to pro-
step in testing for mediation is to ensure that the med-
vide a psychologically safe environment. However, Schein
iating variable is significantly influenced by the inde-
pendent variables, and this was found to be the case. (2009) and Pfeffer (2010) argue that there is too great a
The control variables are tested in model 1 and the focus on short-term financials by employers and the will-
independent variables are included in model 2. The third ingness to compromise on meeting employee needs will
model included union membership to assess for a med- catch up with organizations over the longer term. Thus, the
challenge is for managers to reinforce their role in support-
iating effect. Full mediation occurs when the mediator
ing employees, especially under conditions of declining of
variable negates the significance of the relationship
union influence.
between the independent and dependant variables, while
only partial mediation occurs if inclusion of the mediat-
ing variable leads to a significant decrease in the rela-
tionship (Baron and Kenny, 1986). Conclusion
After controlling for the effects of the potentially This article is expected to make a useful contribution to the
confounding background variables of age and sector, the literature in social capital theory and POS with the findings
results show that union membership only has a marginal suggesting that employee perceptions of the work environ-
effect on employees’ perceptions of control over how ment influence their perceptions of managerial support in
long to work (0.059 in model 2 to 0.063 in model 3), place of union membership. Managerial implications are
job security (0.199 in model 2 to 0.206 in model 3), applicable to organizations aiming to manage employee
pay equity against workload (0.197 in model 2 to 0.186 support. Based on the findings, we propose that managers
in model 3) and safety at work (0.246 in model 2 to should adopt the role of employee advocate in the light of
0.238 in model 3). These marginal changes are insuffi- declining union support for employees. This proposal is of
cient to claim even partial mediation. While the sample particular significance to managers that deal with day-to-
size was large enough to conduct a Sobel test, the lack day employee concerns that directly impacts the perception
of a significant mediation relationship and the non- of managerial support for employees, such as supervisors,
equivalence between the sample sizes did not warrant line managers and general managers. However, changing
it. ‘Control over when to work’ was found to be not expectations, legal boundaries and work frameworks to
statistically significant. improve flexibility and increased focus on safety and
30 Journal of General Management 43(1)

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Declaration of Conflicting Interests Budescu DV (1993) Dominance analysis: a new approach to the
The author(s) declared no potential conflict of interest with respect problem of relative importance of predictors in multiple
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Funding aging diversity in Australia. In: Strachan G, French EL and
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